- McKinsey hires a bunch of "top" school grads
- after a few years, some hires clearly have the potential to make partner, and most don't
- McKinsey encourages clients to hire the people who aren't partner material at an attractive wage
- feeling good about making a step up after capping out at McKinsey, most people gladly accept
- McKinsey now has an alumni network at client's which are a good source of future business
- repeat as desired to build up alumni network
A friend of mine who used to work in management at Ernst & Young told me a bit about how this game is played. You need a strategy for getting people out that maintains the relationship, and offering backdoor bribes to lure people away is one way they do that.
I'm sure some arrogant ass somewhere is telling themselves that the great ones become partners at McKinsey & the washouts become CEO of Google. Kind if like that quote "Anyone can aspire to be President of the United States, but few have any hope of becoming president of the Bohemian Club." [1]
[1] https://www.latimes.com/archives/la-xpm-1987-05-26-mn-2818-s...
And one of these drones currently runs Google :(
McKinsey gets paid ungodly sums in part because they are the archetype of the old boy's club. Their new hires usually come only from top business schools, and likely already have several years under their belt at the types of companies McKinsey gets business from. In addition to that, most banks already have several ex-McKinsey people on staff anyway.
Boston Consulting Group are in the same tier. Back in college, BCG and McKinsey were the holy grail of employers for pretty much all Econ/Finance students who didn't want to go the IB route.